Kazakhstan amends Tax Code amid economic challenges
Kazakhstan's government plans to amend the Tax Code, introducing significant changes. The amendments aim to address current economic challenges. The revisions come even as businesses express concerns over potential impacts.
Proposed Amendments
The proposed changes to Kazakhstan's Tax Code include revisions to corporate tax rates and VAT regulations. The Ministry of Finance has outlined plans to streamline tax collection processes. These amendments are expected to generate additional revenue, according to government estimates.
Business Concerns
Local businesses, represented by the National Chamber of Entrepreneurs, have voiced concerns over the potential impact of the new tax policies. They argue that increased tax burdens could hinder economic recovery. The Chamber has requested further consultations with the government to address these issues.
Tax Code Amendments Enactment
The recent amendments to Kazakhstan's Tax Code were enacted through the Amending Law of 12 December 2023. These changes, effective from 1 January 2023, have improved the tax position for companies involved in transactions with related entities. This development is significant for businesses engaged in such transactions, offering enhanced deductibility of certain expenses.
AIFC Legal Framework
The Astana International Financial Centre (AIFC) operates under Constitutional Statute No. 438-V, adopted on December 7, 2015. This statute amended Kazakhstan’s Constitution to allow a special legal regime within Astana, establishing a unique legal and financial environment.
What's Next
The government is expected to finalize the amendments by the end of the year. It remains unclear how these changes will affect Kazakhstan's economic growth in the long term.
3 sources
Kazakhstan amends Tax Code amid economic challenges
